Chapter 13

Chapter 13 Bankruptcy Attorney

For Midland, Sanford, and Mt. Pleasant, MI


 

Chapter 13 bankruptcies are also called wage earner’s plans. It allows you to develop a repayment plan and keep the property. The repayment plan will be for 3 to 5 years. In a Chapter 13, you may or may not pay back all of your unsecured debt. Payments are determined based on secured debt payments, household expenses, and income.

The advantages of filing Chapter 13 bankruptcy versus Chapter 7 bankruptcy are that it allows one to save their home from foreclosure, save their vehicle from repossession, and pay certain tax debts in a structured manner. It also may help to lower payments on vehicle loans and tax obligations and save unexempt assets from liquidation.

We will develop a plan together based upon your monthly budget and any necessary secured debt payments such as a mortgage or auto loan. You also may be able to pay down some of your student loan debt. No attorney fees are paid upfront, they will be paid as part of your repayment plan. The only up-front costs are your court filing fee and credit counseling. Get started by scheduling a free consultation with our bankruptcy attorney. We have helped many clients throughout Midland, Sanford, and Mt. Pleasant, MI make informed decisions and help get their lives back on track. Contact us today with any questions you may have.

Payment Plan


 

A payment plan will have to be developed which will allow you to pay all of your living expenses and secured obligations and a portion of your unsecured obligations. The monthly payment due to the Trustee under a payment plan is based primarily on your income and expenses. If you do not have a regular income, you will not be eligible to file under this Chapter. After the Court approves the payment plan, and all payments due under the plan are made, you will receive the discharge. To learn more call our professional bankruptcy attorney today!

Reasons for Filing Chapter 13 Instead of Chapter 7


 

Chapter 13 filings are generally used for persons who earn more than the threshold amount set for filing under Chapter 7, have assets over the exemption limits, or have debts that are not dischargeable. In addition, filing under Chapter 13 bankruptcy may allow you time to get current on your mortgage payments (allowing you to keep your home) or alter your payments on your vehicle (allowing you to keep your car). Contact Elmy Law, P.C. today for both Chapter 7 and Chapter 13 bankruptcy guidance. We assist clients throughout Midland, Sanford, and Mt. Pleasant, MI.

Chapter 13 2

Removing a Second Mortgage


 

Chapter 13 Bankruptcy also offers an important, and often unknown, option to consumers who have a residential real estate mortgage, namely, removing a junior lien holder or “2nd” mortgage from your home.  A few things to think about are:
  • If you purchased a home with 80/20 mortgages or if you took out a second mortgage in the past few years, you may be able to remove the second mortgage.
  • If the fair market value of your home is below what is owed on the first mortgage, the second mortgage can be removed and the debt associated with it becomes unsecured debt, treated like your credit card debt.
In a Chapter 13 Bankruptcy, usually only a small, if any, portion of this type of debt is paid.

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